Ayala readies P1.87-B team-up with Singtel through Globe
MANILA, Philippines – Globe Telecom Inc. has agreed to form a P1.87-billion joint venture (JV) with a Singtel Group subsidiary to ramp up cloud, data and artificial intelligence services in the Asia-Pacific region.
In a disclosure on Thursday, the Ayala-led company said Singapore-based NCSI Holdings Pte. Ltd. will own 51 percent of Globe’s information technology subsidiary Yondu and keep a 49-percent stake.
READ: Globe sees recovery signs, puts capital expenditures into broadband business
Yondu, at the same, will acquire full ownership of NCSI’s local subsidiary—NCSI Philippines, the core offerings of which include digital application, infrastructure, engineering and cybersecurity.
Yondu itself is an IT solutions provider that offers services in custom software development, managed security, e-commerce solutions and cloud.
Globe is seen to benefit from the technical capabilities and product offerings from the combined resources of the joint venture.
Globe itself is a partnership between Ayala Corp. and SingTel, being 52.3 percent-owned by their JV—Asiacom Philippines Inc.
On top of that, Ayala has a 14.5-percent stake in Globe, while Singtel has 22.2 percent.
“Our vision for Yondu is to be a force for good through effective IT products and services,” said Ernest Cu, president and CEO of Globe.
Going global
Cu said partnering with NCSI will unlock new global opportunities, enabling Yondu to expand its reach and deliver more impactful IT solutions worldwide.
“This joint venture marks a significant milestone in our APAC (Asia-Pacific) growth journey as we continue to invest to meet the region’s growing demand for technology services, in particular, AI-led solutions,” NCSI CEO Ng Kuo Pin added.
The transaction is still pending regulatory approval.
Globe and NCSI are joining forces amid growing demand for digital solutions that cater to enterprises.
According to a study by International Data Corp., the IT services market in the Asia-Pacific region is projected to have a compounded annual growth rate of 6.2 percent from 2024 to 2028. The Philippine market will see 8.7-percent growth in the same period.
To complement its IT services, Globe has been building up its infrastructure as well to support the surge in data traffic.
The Ayala-led company constructed 1,212 new cell sites, upgraded 4,613 existing mobile sites and deployed 67,456 fiber-to-the-home lines last year. It also added 587 new 5G sites across the country.
